Which of the following would loan forbearance never do?

Increase your monthly payment for a short period of time

What does FAFSA do to your family member if their FAFSA has a mistake or/ a discrepancy?

Ask for a Fafsa Verification to get more information

Someone _______ is eligible for an Application Fee Waiver?

Applying to college for the 1st time w/ low income/assets

What is an Expected Family Contribution?

Amount calculated on FAFSA that your family may have to pay

Which of the following contributes the definition of Grace Period ?

Time between leaving school & paying back loans

Student Aid Report: Tells you your financial aid awards

What is discretionary forbearance?

Lender decides if you get forbearance such as due to illness

Has no interest accrue while a student is still in school

What Is Mandatory Forbearance?

When a criteria is met and the lender must give forbearance

What is a financial aid award letter?

A letter with information on your financial aid package

Unsubsidized Loans have

interest while you're still in school

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FinLit: Financial Aid Vocabulary

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#FinancialLiteracy, #FinancialAid, #Taxation

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Questions 19

Answers

1
Which of the following would loan forbearance never do?
Give you a short period of time where you don't have to pay
Allow you to pay less for your monthly payment
Lower your credit score
Increase your monthly payment for a short period of time
2
Losing their financial aid funding can be a result of...
Their family income going up between years
Not applying for the FAFSA every year
All the other options
Failure to meet Satisfactory Academic Progress (SAP)
3
What does FAFSA do to your family member if their FAFSA has a mistake or/ a discrepancy?
Take away all own assets
Ask for you to come in in person to get more information
Ask for a Fafsa Verification to get more information
Provide you with student aid
4
Perkins Loans are
private loans available to everyone
need-based private loans
government loans available to everyone
need-based government loans
5
When a borrower requests a longer period before they have to pay but interest still accrues:
Grace Period
Deferrment
Discretionary Forbearance
Mandatory Forbearance
6
Someone _______ is eligible for an Application Fee Waiver?
Applying to college for the 1st time w/ high income/assets.
Applying to college for 1st time w/ average income/assets
Applying to college for the 2nd time w/ a low income/assets
Applying to college for the 1st time w/ low income/assets
7
What is an Expected Family Contribution?
Amount calculated on FAFSA that your family may have to pay
Amount of loans your parents will need to co-sign for
Room, board and book costs (everything but tuition)
The money your parents pay for college prep courses
8
What is included in room and board ?
Daily meals only
Shelter only
Daily meals, shelter and tuition
Shelter and Daily Meals
9
Which of the following contributes the definition of Grace Period ?
Date after the FAFSA deadline that it's still accepted
When the borrower pays lower payments during times of need
Time between leaving school & paying back loans
When the borrower requests extra time before loan payments.
10
The SAR is the
Student Assistance Report: A federal need based grant
Satisfactory Academic Records: You have not failed a class
Student Aid Report: Tells you your financial aid awards
Situationally Adjusted Rates: Interest rates that change
11
What family info can you expect to be needed for you to fill out your FAFSA?
All the other options
Whether you have any other outstanding loans
Whether it is going to be your first year in college
Your family's Adjusted Gross Income from the prior tax year
12
Which of the following contribute to cost of attendance at college?
Only what parents pay for directly
Only direct costs like tuition and fees
Only indirect costs like room, board and travel
Both direct & indirect costs.
13
What is discretionary forbearance?
You always get forbearance if you meet federal criteria
You get forbearance just for asking for it
Lender decides if you get forbearance such as due to illness
When the borrower requests a longer period before payments
14
What does EFC stand for?
Extended family contribution
Expected federal contribution
Expected family contribution
Expected financial cost
15
A subsidized loan...
Has the highest interest rates
Has interest accrue while a student is still in school
Has no interest accrue while a student is still in school
Is the same as a grant
16
What Is Mandatory Forbearance?
When a criteria is met and the lender must give forbearance
When the lender can decide whether to give forbearance
The required time after graduation before payments begin
When the lender must give forbearance regardless of criteria
17
What is a financial aid award letter?
A letter with information on your financial aid package
A letter congratulating you on acceptance to a college
A letter replying to a scholarship application you sent
All the other options
18
Offered by private banks directly to the borrowing student and have variable interest rates:
Perkins loan
Private Loans
Federal Government Direct Loans
All of the other options
19
Unsubsidized Loans have
lower interest rates when you finish school
higher interest rates when you finish school
interest while you're still in school
no interest while you're still in school

FinLit: Financial Aid Vocabulary Flashcards | StudBud